Government extends Denel guarantee to 2023
Cash-strapped state-owned company gets a R3.43bn reprieve
The government has extended cash-strapped Denel’s guarantee to R3.43bn over a five-year period ending in September 2023. The arms manufacturer confirmed it had received the extension in September. Its original government guarantee of R2.43bn was meant to expire at the end of September. Denel had asked for a further guarantee and a cash injection to recapitalise the business. It had been waiting for the medium-term budget policy statement to hear if it was going to receive anything. The company said its debt portfolio consisted of government guaranteed commercial paper totalling R2.864bn, with an unsecured note of R290m. “The board continues to support Denel in restoring the confidence of key stakeholders, including financial markets, in the company and the current leadership,” it said. Denel was not allocated any funds by finance minister Tito Mboweni during his maiden medium-term budget policy statement last week. According to the budget policy statement, Denel still had some guara...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.